Titanium Surges Most Since 1999 After Agreement With Syncrude

  • Stock price surges by almost 80% after agreement announced
  • Titanium will have `first right' to oil sand heavy minerals

Titanium Corporation Inc. shares gained the most in more than 16 years after reaching an agreement that gave the company access to heavy minerals at Syncrude Canada Ltd.’s oil sands sites.

The stock price rose 78 percent to the intraday high of C$1.39 at 3 p.m. Thursday in Toronto, the biggest increase since April 1999.

Titanium will have “first right” to recover heavy minerals from waste generated at Syncrude oil sites using a patented technology it owns, the company said in a release. Syncrude was given a 50 percent interest in the patented technology, which will also extract bitumen from the waste deposited in tailing ponds.

The company spent 10 years negotiating with oil-sands producers including Syncrude, Suncor and Canadian Natural Resources Ltd. to apply its technology, Scott Rattee, former senior analyst at Edgecrest Capital Corp., said in a phone interview.

The stock is “surging today because people are amazed it finally happened,” he said.

The technology could give Titanium access to “several hundred million” dollars a year worth of minerals including zircon and titanium dioxide that are now dumped, Rattee said. The technology also raises bitumen extraction by 2 percent to 3 percent and makes the resulting tailing ponds much cleaner as a result, he said.

Scott Nelson, Titanium’s chief executive officer, didn’t return a phone call seeking comment.

Oil-sands companies, which emit more carbon than traditional oil producers and leave vast swaths of wasteland from their mining operations, have sought to reduce their environmental impact in recent years.

Before it's here, it's on the Bloomberg Terminal.